DMC Global Inc.
Case Overview
Status: | Status: Investigating |
Company Name: | Company Name: DMC Global Inc. |
Ticker: | Ticker: BOOM |
Related Attorneys: | Lead Attorneys: Thomas W. Elrod |
Related Practices: | Related Practices: Securities |
The law firm of Kirby McInerney LLP is investigating potential claims against DMC Global Inc. (“DMC Global” or the “Company”) (NASDAQ: BOOM). The investigation concerns whether DMC Global and/or certain of its officers have violated the federal securities laws and/or engaged in other unlawful business practices.
On October 21, 2024, DMC Global disclosed that it was “revising its guidance” for the quarter ended September 30, 2024, stating that the Company’s adjusted EBITDA is now expected to be approximately $5 million, down from prior guidance for $15-18 million, and that the third quarter financial results “will include inventory and bad debt charges at DynaEnergetics totaling approximately $5 million, as well as lower fixed overhead absorption on reduced sales at both Arcadia and DynaEnergetics.” The Company also revealed that the financial results will include an approximate $142 million non-cash goodwill impairment charge “associated with DMC’s December 2021 acquisition of a controlling interest in Arcadia.” On this news, the price of DMC Global shares declined by $2.36 per share, or approximately 18.3%, from $12.93 per share on October 21, 2024, to close at $10.57 per share on October 22, 2024
On October 21, 2024, DMC Global disclosed that it was “revising its guidance” for the quarter ended September 30, 2024, stating that the Company’s adjusted EBITDA is now expected to be approximately $5 million, down from prior guidance for $15-18 million, and that the third quarter financial results “will include inventory and bad debt charges at DynaEnergetics totaling approximately $5 million, as well as lower fixed overhead absorption on reduced sales at both Arcadia and DynaEnergetics.” The Company also revealed that the financial results will include an approximate $142 million non-cash goodwill impairment charge “associated with DMC’s December 2021 acquisition of a controlling interest in Arcadia.” On this news, the price of DMC Global shares declined by $2.36 per share, or approximately 18.3%, from $12.93 per share on October 21, 2024, to close at $10.57 per share on October 22, 2024